São Paulo – Saudi Arabia saw a 48% hike in revenue during Q1 this year, Saudi Press Agency (SPA) quoted the Ministry of Finance as reporting. Revenues amounted to SAR 245.4 billion, or USD 65.4 billion at current exchange rates. Q1 2018 revenue had been SAR 166.2 billion (USD 44.3 billion).
Even though total spending also climbed, by 8% to SAR 217.5 (USD 58 billion), the country ran a surplus of SAR 27.8 billion (USD 7.4 billion).
Non-oil revenue came out to SAR 76,3 billion (USD 20.3 billion), up 46% from SAR 52.3 billion (USD 13.9 billion) in Q1 2018.
Oil industry revenue hit SAR 169 billion (USD 45 billion) during Q1, up 48% from SAR 113.9 billion (USD 30.3 billion) in Q1 2018, as per Ministry of Finance figures.
Over half of Q1 spending concerned government workers’ payments, at SAR 121.8 billion (USD 32.4 billion). Subsidies amounted to SAR 10.3 billion (USD 2.7 billion) and social benefits hit SAR 17.2 billion (USD 4.5 billion). Despite the Q1 budget surplus, Saudi Arabia’s public debt is SAR 610.6 billion (USD 162.7 billion).
Finance minister Mohammed bin Abdullah Al-Jadaan (pictured) explained that the Ministry’s report comprises multiple indicators which reflect the government’s commitment to “transparency and disclosure, strengthening of the public fiscal governance and regulation and achievement of the Fiscal Balance Program objectives.”
Moody’s rated Saudi Arabia A1 with a stable outlook in its annual credit analysis. It said the grade reflects robust government finances and mentioned external liquidity, oil reserves at low extraction costs, and sensible regulation of the local financial system.
Translated by Gabriel Pomerancblum
